Tiffany's Asian Growth Comes To A Screeching Halt

Tiffany's perfume cologne luxury

Photo: Wikipedia

Jewelry maker Tiffany is out with earnings that have matched expectations, but which warn of a slowdown ahead.In fact, the slowdown is already here.

Check out these numbers from the announcement:

  • Sales in the Americas region declined 1% to $434 million in the second quarter and rose 1% to $820 million in the first half. On a constant-exchange-rate basis, total sales were unchanged in the quarter and rose 2% in the half; on that basis, comparable store sales declined 5% in the second quarter and 3% in the first half (sales declined 9% and 7% in the New York flagship store while comparable branch store sales declined 4% and 2%). In last year’s second quarter, comparable store sales on a constant-exchange-rate basis had increased 41% in the New York flagship store and 19% in branch stores. Combined Internet and catalogue sales in the Americas rose 3% in the second quarter (on top of a 16% increase last year) and 2% in the first half.
  • In the Asia-Pacific region, total sales rose 1% to $174 million in the second quarter and 8% to $369 million in the first half. On a constant-exchange-rate basis, total sales increased 3% and 9% in the quarter and half, while comparable store sales declined 5% in the quarter (on top of a 41% increase last year) and rose 2% in the half, due to mixed performance across the region.

That’s a dramatic slowdown in Q2 sales, from growth of 8% for the half, to just 1% in the second quarter. It’s a tad better if you exclude the impact of currency fluctuations, although that just underlines how much the strong dollar is depressing corporate earnings.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.